CAB MANAGEMENT SOLUTION LTD

Executive Summary

CAB Management Solution Ltd exhibits stable liquidity but operates with a thin equity base and significant long-term liabilities, presenting moderate financial risk. While current operations maintain a healthy short-term financial pulse, strengthening equity and managing debt are essential to improve resilience. Focused actions to build capital and manage obligations will enhance the company's overall financial wellness and support sustainable growth.

CAB MANAGEMENT SOLUTION LTD - Analysis Report

Company Number: 12441024

Analysis Date: 2025-07-20 17:56 UTC

Financial Health Assessment Report for CAB MANAGEMENT SOLUTION LTD

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1. Financial Health Score: C

Explanation:
CAB Management Solution Ltd exhibits a mixed financial profile typical of a micro-entity in the early stages of business development. The company maintains positive net current assets and net assets, indicating a baseline financial stability. However, the low net asset value, relatively high long-term creditors, and absence of employees suggest limited operational scale and thin equity buffers. The financial "pulse" is steady but shows signs of cautiousness, warranting monitoring and targeted action to strengthen resilience.

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2. Key Vital Signs

Metric	2025 Value	Interpretation
Current Assets	£51,167	Healthy short-term liquid resources
Current Liabilities	£20,408	Manageable short-term obligations
Net Current Assets	£30,759	Positive working capital indicates liquidity
Creditors >1 Year (Long-term)	£29,545	Significant long-term debt needing management
Net Assets	£1,214	Very low equity cushion to absorb shocks
Share Capital	£1.00	Minimal initial paid-in capital
Employees	0	No staff, indicating possible reliance on director or outsourcing

Interpretation of Vital Signs:

• Liquidity: The company’s current assets comfortably cover current liabilities, signifying a "healthy cash flow" status in the short term. This is a positive "heartbeat" of liquidity.
• Solvency: The presence of long-term creditors close in magnitude to net current assets suggests a "symptom" of financial leverage that could stress solvency if not carefully managed.
• Capital Structure: The net asset base is very low (£1,214), reflecting a fragile equity foundation, which is a "sign of weakness" in the company's financial "immune system."
• Operational Scale: No employees are recorded, which may imply limited operational complexity but also potential over-reliance on the director or external contractors.

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3. Diagnosis: Financial Health Overview

CAB Management Solution Ltd is currently in a stable yet fragile financial state. The company manages to maintain liquidity, ensuring it can meet short-term obligations—a positive sign akin to a stable pulse. However, the thin net asset base and substantial long-term liabilities point to a vulnerability to external shocks or operational downturns.

The company’s financial statements show little growth in equity, and the balance sheet reflects a micro-entity profile with minimal capitalization and workforce. The long-term creditor amounts suggest reliance on external funding which may carry repayment or refinancing risk.

No audit was required, and the company complies with micro-entity reporting standards, indicating simplicity but also limited disclosure of profitability or cash flow trends. The absence of employees also suggests limited operational activity or possible outsourcing arrangements.

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4. Recommendations: Path to Improved Financial Wellness

• Strengthen Equity Base: Consider increasing share capital or retaining earnings to build a stronger net asset buffer. A more robust "immune system" in financial terms will help absorb operational shocks and reassure creditors and stakeholders.
• Manage Long-Term Debt: Review terms and necessity of long-term creditors. Negotiating better repayment terms or reducing debt exposure could alleviate solvency risks and reduce financial strain.
• Enhance Operational Capacity: Evaluate the benefits of hiring staff or formalizing operational roles to support sustainable business growth and reduce reliance on a single director.
• Monitor Cash Flow Regularly: Maintain vigilant oversight of cash inflows and outflows to ensure liquidity remains strong, preventing any "symptoms" of distress such as delayed payments or cash shortages.
• Plan for Growth: As a micro-entity with IT consultancy and software development activities, consider strategic investments in technology or client acquisition to expand revenue and profitability.
• Maintain Compliance and Transparency: Continue timely filing of accounts and returns to avoid penalties and maintain good standing with Companies House and stakeholders.

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